Multiple Agency Fiscal Note Summary — 1231 HB, Site Readiness Grants

Summary

A Multiple Agency Fiscal Note Summary and an Individual State Agency Fiscal Note (Revised) for Bill Number 1231 HB, titled Site readiness grants, covering the Department of Commerce. Part I marks X No Fiscal Impact, lists estimated cash receipts, operating expenditures and capital budget impact as NONE, and marks X for new rule making. Part II states that the bill amends RCW 43.160.060 by adding "costs of achieving site readiness" as an element of planning grants within the Community Economic Revitalization Board (CERB) program and removes the current $50,000 limit, with planning grants not to exceed $200,000 after December 31, 2028. The local government note says the legislation would result in indeterminate revenue for local governments.

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“Multiple Agency Fiscal Note Summary — 1231 HB, Site Readiness Grants.” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-01-17-a30372-d247792-1231-fn-ac82cedbec/, SHA-256 8f58a2725b3b45b16c85e65f41fc95093846c3ec02d4347d5468baf3ea6ee187.

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Multiple Agency Fiscal Note Summary
Bill Number: 1231 HB Title: Site readiness grants

Estimated Cash Receipts
NONE

Agency Name 2023-25 2025-27 2027-29
GF- State Total GF- State Total GF- State Total
Local Gov. Courts
Loc School dist-SPI
Local Gov. Other Non-zero but indeterminate cost and/or savings. Please see discussion.

Local Gov. Total

Estimated Operating Expenditures
Agency Name 2023-25 2025-27 2027-29
FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total
Department of .0 0 0 0 .0 0 0 0 .0 0 0 0
Commerce

Total $ 0.0 0 0 0 0.0 0 0 0 0.0 0 0 0

Estimated Capital Budget Expenditures
Agency Name 2023-25 2025-27 2027-29
FTEs Bonds Total FTEs Bonds Total FTEs Bonds Total
Department of Commerce .0 0 0 .0 0 0 .0 0 0

Total $ 0.0 0 0 0.0 0 0 0.0 0 0

Estimated Capital Budget Breakout

Prepared by: Myra Baldini, OFM Phone: Date Published:
(360) 688-8208 Final

FNPID 65548
:
FNS029 Multi Agency rollup
Individual State Agency Fiscal Note Revised

Bill Number: 1231 HB Title: Site readiness grants Agency: 103-Department of Commerce

Part I: Estimates
X No Fiscal Impact

Estimated Cash Receipts to:

NONE

Estimated Operating Expenditures from:
NONE

Estimated Capital Budget Impact:

NONE

The cash receipts and expenditure estimates on this page represent the most likely fiscal impact. Factors impacting the precision of these estimates,
and alternate ranges (if appropriate), are explained in Part II.

Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete entire fiscal note
form Parts I-V.
If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete this page only (Part I).

Capital budget impact, complete Part IV.

X Requires new rule making, complete Part V.

Legislative Contact: Cassie Jones Phone: 360-786-7303 Date: 01/12/2023
Agency Preparation: Buck Lucas Phone: 360-725-3180 Date: 01/16/2023
Agency Approval: Jason Davidson Phone: 360-725-5080 Date: 01/16/2023
OFM Review: Myra Baldini Phone: (360) 688-8208 Date: 01/16/2023

Form FN (Rev 1/00) 178,324.00 Request # 035-600-2-2
FNS063 Individual State Agency Fiscal Note 1 Bill # 1231 HB
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Significant provisions of the bill and any related workload or policy assumptions that have revenue or expenditure impact on the responding agency by
section number.

Section 1 adds a new section providing legislative intent to ensure equitable recovery and provide business predictability
through promotion of site readiness grants and investing in predevelopment work that supports businesses choose
Washington.

Section 2 amends RCW 43.160.060 by adding “costs of achieving site readiness” as an element of planning grants within
the Community Economic Revitalization Board (CERB) existing program. It also removes the limit for planning grants from
the current $50,000 limit. After December 31, 2028, planning grants may not exceed $200,000.
II. B - Cash receipts Impact
Cash receipts impact of the legislation on the responding agency with the cash receipts provisions identified by section number and when appropriate, the
detail of the revenue sources. Description of the factual basis of the assumptions and the method by which the cash receipts impact is derived. Explanation
of how workload assumptions translate into estimates. Distinguished between one time and ongoing functions.

II. C - Expenditures
Agency expenditures necessary to implement this legislation (or savings resulting from this legislation), with the provisions of the legislation that result in
the expenditures (or savings) identified by section number. Description of the factual basis of the assumptions and the method by which the expenditure
impact is derived. Explanation of how workload assumptions translate into cost estimates. Distinguished between one time and ongoing functions.

There is no impact to the department. The addition of site readiness as an eligible activity of CERB planning grants is in
alignment with the existing programs administered by CERB and can be absorbed into CERB’s existing model at current
staffing levels.

Part III: Expenditure Detail
III. A - Operating Budget Expenditures
NONE
III. B - Expenditures by Object Or Purpose
NONE

III. C - Operating FTE Detail: FTEs listed by classification and corresponding annual compensation. Totals agree with total FTEs in Part I
and Part IIIA.
NONE

III. D - Expenditures By Program (optional)
NONE

Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE

IV. B - Expenditures by Object Or Purpose
NONE

IV. C - Capital Budget Breakout
Acquisition and construction costs not reflected elsewhere on the fiscal note and description of potential financing methods.

Site readiness grants 103-Department of Commerce
Form FN (Rev 1/00) 178,324.00 Request # 035-600-2-2
FNS063 Individual State Agency Fiscal Note 2 Bill # 1231 HB
NONE

IV. D - Capital FTE Detail: FTEs listed by classification and corresponding annual compensation. Totals agree with total FTEs in Part IVB.

NONE
There is no impact to the department. Increasing the maximum allowable planning grants from $50,000 would allow CERB
to finance larger planning projects, including new site readiness plans, which fits within CERB's existing project development
business model.

The impact of the proposed legislation on the number of planning awards is unclear and subject to the availability of amounts
appropriated for CERB and the level of funding requested within communities’ applications. Specifically, an increased
appropriation will result in increased CERB awards, and the removal of the $50,000 planning cap may result in an increase
in the size of a planning award. From a sample of 12 counties from 2016 to 2022, CERB has awarded 48 planning grants at
an average size of $46,800 with nearly 80% being funded at the current statutory cap of $50,000.

Part V: New Rule Making Required
Provisions of the bill that require the agency to adopt new administrative rules or repeal/revise existing rules.

CERB has rule-making authority within current statute if rule-making becomes necessary.

Site readiness grants 103-Department of Commerce
Form FN (Rev 1/00) 178,324.00 Request # 035-600-2-2
FNS063 Individual State Agency Fiscal Note 3 Bill # 1231 HB
LOCAL GOVERNMENT FISCAL NOTE
Department of Commerce

Bill Number: 1231 HB Title: Site readiness grants

Part I: Jurisdiction-Location, type or status of political subdivision defines range of fiscal impacts.
Legislation Impacts:
Cities:
Counties:
Special Districts:
X Specific jurisdictions only: Rural communities defined by the board and rural counties determined by OFM
Variance occurs due to:

Part II: Estimates
No fiscal impacts.

Expenditures represent one-time costs:

Legislation provides local option:

X Key variables cannot be estimated with certainty at this time: The amount of site readiness costs by project.

Estimated revenue impacts to:

Non-zero but indeterminate cost and/or savings. Please see discussion.

Estimated expenditure impacts to:
None

Part III: Preparation and Approval
Fiscal Note Analyst: Kristine Williams Phone: (564) 669-3002 Date: 01/13/2023
Leg. Committee Contact: Cassie Jones Phone: 360-786-7303 Date: 01/12/2023
Agency Approval: Alice Zillah Phone: 360-725-5035 Date: 01/13/2023
OFM Review: Gwen Stamey Phone: (360) 790-1166 Date: 01/13/2023
Page 1 of 2 Bill Number: 1231 HB
FNS060 Local Government Fiscal Note
Part IV: Analysis
A. SUMMARY OF BILL
Description of the bill with an emphasis on how it impacts local government.
This legislation would amend RCW 43.160.060 to allow rural communities and counties to apply for a grant to pay the
costs of achieving site readiness for an eligible project.

Sec. 2 amends RCW 43.160.060(2)(D)(iii) to include the ‘costs of achieving site readiness’ and imposes a limit of
$200,000 per grant effective January 1, 2029.
B. SUMMARY OF EXPENDITURE IMPACTS
Expenditure impacts of the legislation on local governments with the expenditure provisions identified by section number and when
appropriate, the detail of expenditures. Delineated between city, county and special district impacts.

There is no expenditure impact to local governments.

Local governments would be eligible to apply to the Community Economic Revitalization Board (CERB) for a grant to pay
for the site-specific costs of achieving site readiness. CERB does not administer competitive grant programs. Board staff
provide applicants direct technical and project development assistance during the application process.
C. SUMMARY OF REVENUE IMPACTS
Revenue impacts of the legislation on local governments, with the revenue provisions identified by section number, and when
appropriate, the detail of revenue sources. Delineated between city, county and special district impacts.

This legislation would result in indeterminate revenue for local governments.

The type and amount of site readiness expenses will vary depending on each project. While the CERB program has
averaged 17 applications per year since 2016, there is no information available to predict the amount of site readiness
costs local governments would apply for. This legislation will impose a limit of $200,000 per grant award beginning
January 1, 2029.

SOURCES:
Community Economic Revitalization Board

Page 2 of 2 Bill Number: 1231 HB
FNS060 Local Government Fiscal Note

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